Supply in bits?

This paper investigated the relation between digitisation and diversity in the record industry in the Netherlands. The recent discussion on cultural diversity has its roots in the political sphere where members of the WTO have opposite interests regarding free trade of cultural goods. The concept of cultural diversity is equivocal and has attracted ample attention in the academic literature. I surveyed the literature discussion cultural diversity in the record industry that is mainly concerned with the relation of concentration and diversity. Drawing from theory of Nelson (1970), the "frictionless market hypothesis" by Brynjolfsson & Smith (2000) and the Long tail of Anderson (2004) I tested whether digitisation my hypothesis - Digitisation leads to more diversity in the supply of records in the Netherlands- and found that both variables indeed shared a strong relation